Discharge: Frustration

Question 1

Taylor v Cadwell

Answer 1

Defines as when the contract becomes impossible to perform at fault of neither party, the contract ends

Question 2

Force majeure clauses

Answer 2

Express terms in a contract to exclude liability/provide what will happen in unforeseeable/extraordinary event

Question 3

Frustrating events

Answer 3

Impossible (subject matter destroyed)
Impossible (subject matter unavailable)
Illegality
Radical changes in circumstances

Question 4

Taylor v Caldwell (FE)

Answer 4

Frustration due to destruction of subject matter

Question 5

Jackson v Union Marine

Answer 5

Frustration due to subject matter becoming unavailable

Question 6

Noblee Thorl

Answer 6

Must become impossible, not just difficult/expensive

Question 7

Condor v Barron Knights

Answer 7

Frustration due to unavailability of a person

Question 8

Denny, Moff and Dickerson v James Fraser

Answer 8

Law changes so performing contract is not legal

Question 9

Krell v Henry

Answer 9

Circumstances drastically change after contract is made so contract becomes pointless

Question 10

Herne Bay v Hutton

Answer 10

Not frustrated for change of circum if does not make contract pointless

Question 11

Davis Contractors v Fareham UDC

Answer 11

If just inconvenient/slightly different circumstances, this does not mean it’s impossible

Question 12

Limits on frustration

Answer 12

Foreseeable events

Self induced frustration

Question 13

Amalgamated Investment Property v John Walker

Answer 13

If the frustrating event could have been foreseen by the party, they cannot argue this frustrated their contract

Question 14

The super servant two

Answer 14

If frustrating event was due to voluntary action/choice of one of the parties, the contract will not be frustrated as if one party is in control it is their ‘fault’

Question 15

Effect of frustration on contract

Answer 15

Automatically ends a contract from the point of the frustrating event, parties have no choice in this

Question 16

S1(2)
Law Reform (Frustrated Contracts) Act 1943

Answer 16

• Money paid at the time/before frustrating event is recoverable (minus ‘just expenses’)
• any money still to be paid ceases to be payable

Question 17

Gamerco

Answer 17

Some money paid/payable before FE may be kept by other party for expenses (at court’s discretion and capped at amount paid/payable before FE)

Question 18

S1(3)
Law Reform (Frustrated Contracts) Act 1943

Answer 18

Where no pre-payment made/payable before FE but party partly performed, some money may be awarded for worth of performance/repay expenses